Greetings all,

 

            I wanted to take a moment to expand on the events surrounding Monday’s termination. It was, no doubt, shocking and concerning. This decision was, in my view, fully justified. Know that I have taken the liberty of drafting this response without the knowledge of the founders or other executive team members in an earnest attempt to provide a rational explanation for such swift action. Below are the critical reasons which, I hope, will provide not only understanding but help to assuage any unease you may be experiencing.

 

Standard Business Ethics

 

            Without invoking ethics particular to this field, know that this is already considered an egregious ethical violation of standard business practices. Most organizations would consider a current employee, let alone one of a high-ranking position, forming a business in direct competition a conflict of interest and a serious violation of trust. Further, this organization was formed in secret, further undermining the trust placed in the now-former employee. Seemingly endless precedents (e.g., https://www.osler.com/en/insights/blogs/employment-and-labour-law-blog/when-outside-business-activities-can-be-just-cause-for-dismissal) to organizations, within and outside of the field of ABA, terminating employment for similar reasons. Additionally, such endeavors carry heightened risk of misuse of company resources and insider knowledge. There is an inherent risk of misuse of confidential or proprietary information; regardless of whether any occurred, the undisclosed, competing venture created a serious conflict of interest.

 

Heightened Ethical Obligations within ABA

 

            As you are well aware, the field of ABA is governed by a strict code of ethics written by the Behavior Analyst Certification Board (BACB). This makes the stakes of conflict of interest higher, with direct implications for the organization, you (the employees), and, most importantly, the clients. The BACB makes explicit, unambiguous statements regarding avoiding conflicts of interest, protecting clients, and ensuring personal gain does not interfere with professional responsibilities.

            To gain an impartial view, I reached out to the ABA Ethics Hotline. Here is their response to this situation. Unfortunately, I am unable to share direct quotes of that correspondence (per their terms) but I can tell you that it was suggested these actions were potentially* a basic violation of code 1.01 as well as others in sections 1 & 2.

 

*The ABA Hotline uses non-committal language in their reviews to legally protect themselves.

 

High Ranking Role

 

Given her status as an officer under our operating agreement/bylaws—and as a supervisor of supervisors with authority that permeated operations—she carried specific fiduciary duties. Running a competing business while in that role directly conflicted with those duties, including but not limited to:

• A duty of loyalty: “directors and officers of a corporation working in their capacities as corporate fiduciaries must act without personal economic conflict.”

• A duty of good faith: “directors and officers must advance interests of the corporation and fulfill their duties without violating the law.”

• A duty of confidentiality: “directors and officers must keep corporate information confidential and not disclose it for their own benefit.”

 

Source: https://www.law.cornell.edu/wex/fiduciary_duty

 

Industry Norms

 

            Across any industry, these would be grounds for dismissal. For example, a bank VP starting a lending firm on the side would be instantly terminated. A director at a software development company starting a side business that competes for the same customers would be instantly terminated. A hospital service line director launching a private outpatient clinic targeting the same referral sources, a CPA firm senior manager running a side accounting practice for the same small-business market, a restaurant group operations director opening a competing restaurant in the same trade area, a construction project executive forming a GC that bids on the employer’s clients, an advertising agency account director starting a boutique agency and pitching the agency’s accounts, a management consulting partner running a side consultancy courting current prospects… I could go on…

 

Secrecy

 

Running the business secretly undermines trust. Even if there had been no direct client harm yet, the lack of disclosure suggests the supervisor knew it could be problematic. Transparency is the cornerstone of ethical practice in ABA and in management. The act of hiding the venture itself created an ethical and professional breach.

 

Moonlighting vs Conflict

 

To be clear, moonlighting is not prohibited. Employees have historically worked second jobs, even in ABA, without issue. The difference is disclosure and evaluation. When employees inform leadership, the organization can determine whether conflicts of interest or multiple relationships might arise. By contrast, secretly founding a competing ABA agency is categorically different from disclosed secondary employment. It goes beyond moonlighting into a direct conflict.

 

Questions You May Be Asking

 

Q: She didn’t take any clients- what’s the harm?

 

A: The issue isn’t just client poaching; it’s the existence of divided loyalty. Operating a competitor while holding a supervisory role creates the potential for issues like the misuse of confidential information or favoritism in assignments.

 

Q: Are we not allowed to have second jobs or start a side business?

A: You are, of course, allowed to pursue secondary employment opportunities; potentially even in the field of ABA. I, myself, teach at universities and offer consulting on the side. Side ventures are not the problem—side ventures that directly compete with the employer are. Most industries draw a sharp line between hobbies/freelance work and forming a business that competes in the same market. Should you pursue secondary employment with another ABA provider, you must disclose that information with not only Behavioral Connections but the other agency, as well, so that both may evaluate for potential conflicts of interest or other ethical violations.

 

Q: But she didn’t sign a non-compete?

 

A: Even without a formal non-compete, the duty of loyalty exists in employment law and common organizational practice, especially for high-ranking staff. A clinical supervisor is entrusted with sensitive information and decision-making authority that makes impartiality a critical responsibility.

 

Final Takeaway

 

            The decision is well in line with historical precedent, both within and outside the field of Applied Behavior Analysis. Under any circumstance, these actions were a clear conflict of interest. Specifically within the field of ABA, these actions were in direct violation of our Code of Conduct. Moreover, the efforts made to conduct such actions in secrecy are damning evidence, in and of themselves, of misconduct. Worse, I am confident that open communication, collaboration, and clearly established intent could have led to resolutions allowing for continued employment and the founding of a side venture without ethical violations or breaches of trust.

 

 

 

Mahalo,

 

Dr Von